Sales and Use Tax Annotations

Annotation 190.0442

(a) IN GENERAL—ACTIVITIES CONSTITUTING CONTRACTING OR MAKING OF IMPROVEMENTS

190.0442Houses on Indian Reservation. A firm contracts with an Indian Housing Authority to construct 40 homes on an Indian Reservation. The contract provides in part: "Title to all materials to be used in this project which are delivered to and properly stored on the jobsite and the subject of partial payment shall transfer to the owner prior to the time the materials are installed by the contractor or any subcontractor." The contract also provides for a separate price for materials and charges for installation.

The contractor is the retailer of the materials and the sales to the Housing Authority on the reservation are exempt from tax. 1/16/86.